Analysis
XRP buyers flee the market as prices set to drop below $0.5
Posted:
| Last updated: January 30th, 2024
Journalist
- XRP holders are underwater and optimism is low.
- Technical analysis showed that a sweep of the October lows was likely.
XRP was on a downtrend. The bears have been overwhelmingly strong throughout January. The brief rally to reach $0.62 on 11th January lasted four days and reversed just as quickly.
A previous AMBCrypto report highlighted that the bearish pressure on XRP was intense and likely to take the prices south of the psychological support level of $0.5. At press time, this scenario appeared likely.
The former support zone at $0.53-$0.55 would now serve as resistance
Source: XRP/USDT on TradingView
The market structure on the 12-hour chart has been bearish since 19th January. The rally to $0.62, despite forcing a bullish structure break, filled an imbalance and was forced to reverse. The RSI has been below neutral 50 for most of January, reflecting the downward momentum of the asset.
The OBV has trended downward since mid-December. The past ten days saw this trend accelerate quickly. Together, the price action and the market structure pointed toward more losses.
A bounce to $0.53 or $0.549 would retest former support levels as resistance and would be a place for traders to look to go short. The $0.473 low from October is the next bearish target.
The rising mean coin age was one positive news for investors
Source: Santiment
AMBCrypto’s analysis of Santiment data showed the token was undervalued. The MVRV ratio was at -16.25%, the lowest it has been since 18th October. This also showed that holders were at a loss and pointed to reduced investor confidence.
The weighted sentiment was also negative over the past ten days but saw a jump in recent hours. This came even as prices plunged downward.
Read XRP’s Price Prediction 2024-25
On the other hand, the mean coin age has trended higher since the first week of January. This indicated a network-wide accumulation.
The dormant circulation metric showed a large wave of selling on 17th January. After this, XRP fell just over 11%, from $0.57 to $0.503 at press time.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
